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Invoicing in Brazil

We are a US based recruiting firm that specializes in outsourced recruiting (RPO). One of our biggest clients is a US based, international company, that has recently opened a division in Brazil. We are currently doing the recruiting for their Brazil entity and billing the headquarters in the US for the work. Moving forward, they would like for us to invoice the Brazilian entity direct in Brazilian currency. I have limited experience in international billing and looking for any advice/direction on where to start to look on how to invoice the client directly in Brazil. Do I have to (1) set up a company in Brazil or (2) is there a "middle" service that I can use? Any help will be appreciated!


Topic Expert
Keith Perry
Title: Director of Global Accounting
Company: Agrinos, Inc.
(Director of Global Accounting, Agrinos, Inc.) |


So long as you don't set foot in Brazil, you can invoice from the US and it is safe. If you travel to Brazil, sign an agreement there, etc...then you start crossing the line and should take a closer look at your exposure. If you have someone on the ground doing the recruiting you should definitely incorporate. If you are just doing the negotiation with a local employee (but signing in the US), you can likely get by with a branch office.

Assuming that you don't have that problem....

The big caveats that I have are:
1) Will your bank take Reals? If not, have your bank advise you on a correspondent bank for receiving and translating the Reals. Normally this is *their* problem, but it is good to have your ducks in order and to understand what the risks are. And...crank up your fees for currency risk and transaction fees.
2) My experience with non-national subs is that they tend to act very differently from the parent. I've had awful collections experience. Pre-payments, credit limits, and potentially letters-of-credit all may be good ideas.

Other than that, it is not much different from selling across state lines in the US. Watch the PE issues, and it should be pretty smooth sailing.



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